Titan Nvidia Reports Earnings

November 20, 2025

“Hello?  You’re looking for Mr. AI Spending Slowdown?  Sorry, there’s no one here by that name!”

Nvidia crushed it last night.  Earnings and guidance beat estimates by a wide margin.  Revenue grew +62.5% y/y – an acceleration from the prior two quarters.  Guidance for next quarter was +65% y/y revenue growth – another acceleration.  Gross profit margin was 73.5%, an improvement vs last quarter.  Guidance for next quarter is 75%, implying an even greater improvement.  

I’ve been trying to think of the best way to explain this growth.   In 2019, Nvidia’s total annual revenues were around $10 billion.  That’s how much the whole company made in all of 2019.  This year, in the three months between the October and July quarters, Nvidia revenue grew by $10 billion.  We will probably never see something like this again in our lifetimes.  The size and speed of it is truly unique.  

On the conference call, management addressed some common concerns in the investor marketplace, namely the sustainability of AI related infrastructure demand.  The longer-term debate will continue.  But the near-term question is certainly settled.  Specifically, mgmt said: “Demand for AI infrastructure continues to exceed our expectations.  The clouds are sold out.  Our GPU installed base, both new and previous generations, are fully utilized.”

What about valuation, you say?   Consensus estimates for earnings per share for next year will end up around $8/share.  So at the current stock price, that equates to a 24-25x P/E multiple.   That’s roughly the same multiple as Visa, IBM, or McDonalds.  The average for the entire S&P is 30x.   So Nvidia doesn’t strike me as overvalued, per se.  The key question for NVDA:  will these earnings hold up?  

So far, the answer is a resounding yes.